workers comp

Discussion in 'Business Operations' started by david scott, Jan 25, 2006.

  1. david scott

    david scott LawnSite Member
    Messages: 21

    what does this stuff cost?heard its alot from some. smaller operation who's 1099 my "helper" for 2 years now.have had comm. job for 2 years now,has'nt really been a problem with so i dont get sticker shock:cry:
  2. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    It's a percentage based on employee pay. Your question was tough to understand, do you have a CPA? I highly recommend one. Pay a CPA to sit down and talk. Write all your questions down before you have this meeting. The CPA will clear up all your questions.

  3. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821

    You will need to find an insurance company.The rate is based on payroll, and the price could be from 10 cents on a dollar on up.If your services include landscaping and tree work, look for it to be higher on the rate scale.

    1099ing employees is a bad thing--you better hope the IRS don't audit you.
  4. Jason Rose

    Jason Rose LawnSite Fanatic
    Messages: 5,858

    I assume that you aren't withholding taxes, right? If you are sending them a 1099 you better have it in blood that they were "contract labor" or a sub contractor. Iv'e heard of cases like this where the employer dosn't withhold, sends the employee a 1099 and then the employee squeals when they have to cough up the full % for tax. It's easy for them to claim that they were under the impression that they were your employee, meaning that it's then illegal for you to pay them anything over 600 annually without withholding and most importantly, paying work comp and unemployment. There's many new laws to keep employers from doing this these days... It's the unemployment that gets them into trouble many times.

    Just all the more reasons I don't want the headaches and costs of hiring help!
  5. david scott

    david scott LawnSite Member
    Messages: 21

    that's what i was lookin' for! got 500k gen.lia. through local farm burea and a local cpa.looking to expand this year but some of this stuff gives me headache:dizzy: preciate it!
  6. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    But that's not Workers Comp. General Liability ONLY covers your "business" against damage and/or injuries caused by you or your employee to a third party. It does NOT cover injury to you or your employee as Workers Comp does.

    As to the cost of WC Ins that rate is set by your State not the insurance provider but an Insurance agent can give you the cost per $100 of payroll.
  7. Green Leaves

    Green Leaves LawnSite Member
    Messages: 37

    I just got a quote for about $95 a month based on an estimate of $20,000 in payroll.
  8. Triple R

    Triple R LawnSite Member
    Messages: 244

    In CA it's about 18% of payroll, one of the reasons I went back to solo.
  9. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    That sounds right.

  10. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821


    Since the eighties , my state has allowed the insurance companies to set their own rate.

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